A bridge loan is a type of financing product that are usually used by developers and property investors, and is considered as an alternative to mortgage. It is a short-term loan and a much easier way to access financing. People usually take a bridge loan to escape the long process of getting home loans or mortgage loans. In a bridge loan, the loan is taken against a property and will be repaid once that property is sold or a new property (purchased through the loan) is sold at a higher price. Other uses for a bridge loan include financing for mobile homes, divorce settlement, and different business investments.
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